What's the difference between a tax deed and a mortgage foreclosure auction?

Although both end in a public auction, the origin and effect are very different. In a mortgage foreclosure, a creditor holding a lien (the mortgage, or the HOA) sues, and the auction clears their lien and those below it, but leaves senior ones alive.

In a tax deed, the county auctions the property because taxes went unpaid. Since taxes hold super-priority, a tax-deed sale wipes out nearly all other liens, including mortgages — which makes it attractive, but with its own risks: messier titles, redemption rights, and sometimes occupants.

For an investor the costly mistake is assuming one auction works like the other. BIDROI focuses on Miami-Dade mortgage foreclosures and analyzes the exact lien position so you know what you inherit in each case.